Market update – Poor domestic cues pulled down market … US Dow climbs over 300 pts
· Nifty declined 3% and Bank Nifty nosedived over 6% on account of poor domestic cues. Continued FIIs selling, rising corona virus cases have a negative impact in the market. Stimulus measures have not enthused markets, while lockdown had been extended again due to rising infections. This, in addition to the insolvency procedures announced by the FM yesterday, could lead to an increase in NPAs for banks. As a results, Indian market not yet participated in the global markets. US Dow Future surged 335 points or 1.5% today – Partial recovery in the market may not be ruled out in the later part of the day on account of short covering.
· India Vix spiked by 4% to 40 and USDINR surged 36 paisa to nearly 76
· Banking and NBFC stocks like ICICI, IndusInd Bank, ICICI, HDFC Bank, Kotak Bank, M&M Finance, L&T Finance slipped 4-12%. Both L&T Finance and M&M Finance reported poor Q4 results.
· Asian stock markets rose Monday after the chief U.S. central banker expressed optimism the the American economy might start to recover this year from the coronavirus pandemic.
· Bajaj Finance declined 5% - Company will be announce Q4 results tomorrow.
· AU Small Finance declined 3% while the promoters sold 52.2lkah shares to repay loan Rs165cr
· Tech stocks like Infosys, TCS, Wipro, HCL Tech gained 1-2% as benefit of increased USDINR.
· Coal India – stocks declined 6% after the Union government opened up the mining sector in a big push for privatisation.
· Abnormal volumes – Infosys, Colgate and Bharati Infra (results today – expects post market)
· Action expected ahead of results tomorrow - Apollo Tyres, Bajaj Finance, L&T Infotech, Nesco, Sanofi India and Tata Power
Brokers Radar
· Reliance Industries CLSA TGT 1770.
· CIPLA BUY CLSA With TGT at 720
· Morgan Stanley overweight on Biocon with TGT 327
· Nippon Life CUT TGT by CLSA from 380 to 300
· CLSA cut L&T Tech TGT from 2160 to 1340
· Siemens TGT by Jefferies at 900 from 930
